Why a deal for former Mt. Gox customers could resurrect failed Bitcoin exchange

Failed Bitcoin exchange Mt. Gox could rise again if its former customers accept an out-of-court settlement to resurrect the trading house.

Mt. Gox collapsed in February this year after losing 850,000 bitcoins when hackers allegedly took advantage of a flaw in the company's implementation of the Bitcoin protocol, prompting thousands of out of pocket customers to file a class action lawsuit.

If the Japanese administrators overseeing Mt. Gox's liquidation approve the acquisition, Sunlot hopes to offer the customers the failed exchange, as well as a share of 200,000 bitcoins found by the exchange in an old wallet.

A statement from Edelson, the law firm, handling the US case, quoted by the BBC, read: "This is the customers' best option and the only chance they have for full restitution."

In return for ceasing the class action, customers have been promised a collective 16.5% stake in a revitalised exchange, according to pymnts.com, which reports that Sunlot hopes the move would spark renewed interest in a Bitcoin trade house.

The investors behind Sunlot have launched savegox.com, a campaign calling on cryptocurrency aficionados to help them stop the exchange's liquidation.

The website reads: "We need your help to stop a liquidation, which would be good neither for Mt. Gox creditors nor Bitcoin's reputation with the general public and regulators."

Mt. Gox was the most widely used Bitcoin exchange in the world prior to its collapse, meaning Sunlot could own an influential trading house if former customers can be convinced to return.

Under the deal, some Gox execs would be released from litigation if they back the deal, but CEO Mark Karpeles, parent company Tibanne and partner Mizuho Bank would remain liable.

Karpeles has not been charged with any offences in relation to Mt. Gox's collapse. However, his lawyers last month indicated that the Tokyo-bases businessman would not fly to the US to face questions over the failed exchange.